With guaranteed long-term income, you'll never have to worry. And for 99 per cent of annuity beneficiaries who do not sell their structured settlement payments, structured settlement payments will continue to provide the financial support that was originally intended. Or, a beneficiary who received a structured settlement as a result of an injury may have the opportunity to purchase or renovate a home to better fit their lifestyle. These low returns have put pressure on the return on capital of life insurance companies that offer structured settlement annuities, prompting many insurers to leave the market.
Structured agreements provide much-needed protection, security and peace of mind for more than 30,000 agreement beneficiaries a year. The act of buying and selling structured settlement payment rights is known as a structured settlement factoring transaction. Unfortunately, most Americans who go through the long, exhausting, and costly liquidation process never realize the many advantages that structured agreements can provide. Although many beneficiaries of a structured agreement find that the agreement is tailored to their needs, some may experience changes in financial circumstances and cannot obtain funds through conventional financing or other sources.
Structured settlement consultants can be a valuable part of your settlement team and can help you throughout the liquidation process. The payment flow acquired under the annuity exactly coincides, in terms and amounts, with the periodic payments agreed in the settlement agreement. Market-based financing assets are the most recent and interesting development in the world of structured settlement. A structured agreement can be used in conjunction with settlement planning tools that help preserve the claimant's Medicare benefits.
Some municipalities even have stricter regulations and are generally in areas where there is a larger population at risk with structured settlements. Therefore, it should come as no surprise to anyone that recipients of structured settlement payments have to sell structured settlement payments and withdraw part of their payments to cope with life's changes, challenges and opportunities. Structured agreements can stretch settlement funds by providing tax-free payments for lost income, medical bills, or other future needs, providing tremendous long-term security for injured individuals and their families. These clauses allow an estate to withdraw the deceased person's structured settlement annuity, usually to pay estate taxes.
Even insurance companies that issue structured settlement annuities recognize that there needs to be an escape valve.